• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 5 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 hours Hong Kong protesters appeal to Trump for support.
  • 14 hours Europe: The Cracks Are Beginning To Show
  • 16 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 1 hour Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 1 hour Millennials: A boil on the butt of the work ethic
  • 3 hours A little something for all you Offshore swabbies
  • 11 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 16 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 13 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 4 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 51 mins Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 1 hour Shale profitability
  • 24 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 11 hours Let's shut down dissent like The Conversation in Australia
Oil Prices Close 15% Higher On Record Trading Day

Oil Prices Close 15% Higher On Record Trading Day

Oil prices spiked on Monday,…

US To Supply More Than Half Of Global Gas By 2035

US To Supply More Than Half Of Global Gas By 2035

The United States is expected…

EU Mechanism To Buy Iranian Crude Won’t Be Operational By Nov 5

50 Euro bill

The creation of a special purpose vehicle that would allow the European Union (EU) to continue buying Iranian oil after the U.S. sanctions on Tehran return is politically risky and complicated, progressing very slowly, and will not be operational on November 5, the day on which American sanctions on Iran’s oil snap back, EU diplomats told AFP on Thursday.

“The undertaking is very complicated... the vehicle will not be operational on November 5,” one senior EU official told AFP.

The EU said in September that the foreign ministers of China, France, Germany, Russia, and the UK—the countries still in the Iran nuclear deal—met with Iran’s foreign minister and decided to create a special purpose vehicle for dealings with Iran. 

The bloc is struggling with the set-up of such a vehicle because no EU member is willing to host it for fear of angering the United States, the Financial Times reported on Sunday, citing EU diplomats.

The idea behind the special purpose vehicle (SPV) is to have it act as a clearing house into which buyers of Iranian oil would pay, allowing the EU to trade oil with Iran without having to directly pay the Islamic Republic.

However, the creation of the vehicle looks complicated, also due to the political risk of angering the U.S. Administration, which has criticized such an undertaking.

“We need to supply it with capital and clarify its governance -- this is not easy and it will not just start working overnight,” an EU diplomat told AFP on Thursday. Another one noted that the EU wanted to avoid a “direct confrontation” with the U.S. Administration before the November 6 midterm elections.

Related: Canada Lacks A Successful Energy Strategy

Officials insisted to AFP that the SPV plan is “not dead,” but it’s complicated and politically sensitive.

The United States will be “aggressive and unwavering” in enforcing the sanctions on Iran and won’t let those sanctions be evaded by the European Union or anyone else, U.S. national security advisor John Bolton said in September after the EU announced it would be working to create the SPV.

U.S. Secretary of State Mike Pompeo also criticized the EU’s plan for continuing transactions with Iran, describing it as “one of the most counterproductive measures imaginable for regional global peace and security.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play